Recent eMarketer projections predict
programmatic ad spend to boom, with U.S. advertisers expected to spend $14.88 billion to purchase digital display ads programmatically this year -- just over a quarter of the $58.61 billion total
digital ad spend anticipated this year.
Looking back at year-end 2014 data, it’s easy to see why programmatic ad spend is expected to continue to soar.
In its latest quarterly
report, which examines data from Q4 2014, Index Exchange reveals that spend on its exchange grew by more than 50% quarter-over-quarter, as “all of the top sectors” boosted spend
significantly. Travel was the only exception, as its programmatic spend remained constant, Index Exchange notes.
Retail continues to establish itself as a leading sector in the programmatic
space, contributing almost one-third of overall programmatic spend during the quarter, per Index Exchange. It nearly doubled its programmatic spend in Q4 over Q3, a jump which is at least partially
attributable to the holiday rush, no doubt.
Target was the leading individual brand (not surprising, given their focus on trading premium inventory via programmatic), followed by Gap, Best Buy,
Verizon and Comcast. Walmart, Amazon, AT&T, GM and Microsoft round out the top 10 biggest spenders.
In the finance sector -- second behind retail in terms of programmatic spend during Q4
2014, though it only spent about one-third as much as retail -- American Express was the top spending brand once again. State Farm jumped from fourth to second and Walmart jumped from ninth to third.
Progressive and All State rounded out the top five programmatic spenders in the finance sector during the quarter.
“Competition dramatically increased within the insurance
segment,” notes Index Exchange, “where several brands -- State Farm, All State, and Blue Cross and Blue Shield -- ramped up their spend in Q4.”
As Real-Time Daily
noted, much of this rapid growth is being led by the brands themselves. The number of client seats on the ad exchange has surpassed the number of agency seats, according to the report.